Tesla Launches Cybercab Rides in Austin as Federal Regulators Evaluate Rollout

Tesla has begun offering rides in its two seater Cybercab in limited areas of Austin, Texas. The vehicle is designed without a steering wheel or pedals. The National Highway Traffic Safety Administration responded to the rollout by stating that it is in contact with Tesla and is evaluating the situation. This development follows a launch event in Austin on Thursday attended by investors and social media influencers. While Tesla has expanded its robotaxi service to several cities in Texas and Florida since June 2025, it still lacks permits to operate driverless vehicles in California.

CEO Elon Musk has positioned the Cybercab as a central component of Tesla's transition into an AI robotics company. He has previously claimed that the vehicle would be the company's largest volume model and that the robotaxi network would expand rapidly. However, reports indicate that the rollout has fallen short of Musk's previous targets. For example, Tesla AI software head Ashok Elluswamy announced that the company's vehicles have traveled 1 million miles without humans, a milestone that competitor Waymo reached in January 2023.

Tesla's strategy relies on using inexpensive cameras rather than the radar and lidar systems used by competitors. The company plans to deploy the Cybercab on a ride hailing network and eventually sell the vehicles directly to customers. Federal regulations currently limit the number of vehicles a manufacturer can sell without steering wheels and pedals, which may impact Tesla's ability to collect fares on a large scale.

Coverage of the event differed in tone. A center leaning source focused on the regulatory response and the strategic importance of the vehicle to Tesla's market value. A center left leaning source framed the debut as quiet and peculiar, noting the absence of Elon Musk and the restrictions placed on attendees regarding social media posts.